“Why do businesses lease equipment?” It is quite a common question, especially from new owners who are just entering the world of business. We answer that question here.
There are many reasons why a company may lease equipment, particularly the fact that leasing and financing comes with a multitude of great benefits and advantages over making a cash purchase.
By leasing or financing the equipment for your business, you are taking out an insurance policy against the possibility that your equipment will become obsolete over time. Leasing and financing will enable your company to have an easier time matching cash outflow with the equipment’s revenue production.
On top of that, by leasing your equipment, you will be conserving your much valued working capital and all of your bank lines as well.
Those are a lot of reasons as to why do businesses lease equipment….
Leasing your company’s equipment is not only efficient and convenient, but it also allows for 100 percent financing as well. So today to answer the “why do businesses lease equipment” question, we are going to show you the top ten reasons why companies decide to lease their equipment.
Why Do Businesses Lease Equipment: The Top 10 List
1. The Power of Purchasing – By leasing and financing your company’s equipment, you will be able to acquire higher-end equipment you may not have been able to afford if you cash purchased. That is powerful.
2. Balance Sheet Management – There are some leases out there that can help you manage your balance sheet. It will also help you in improving the financial picture. It will do this by helping you conserve the capital of your operations, and it will also open up your working capital and bank lines that are used for inventory, eventual business expansion, and financial emergencies.
3. 100 Percent Financing – When it comes to leasing and financing your equipment, there is never a down payment. The life of the equipment that you are leasing will be matched by the lease terms and arrangements.
4. Management of Assets – When you lease equipment, you will have use of the equipment over a specific amount of time with fixed payments. This lease will assume and manage the risk of the equipment’s ownership, and at the end of the lease, the company leasing will dispose of the equipment.
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5. Additions to the Service – In a lot of agreements, you can also include the installation of the equipment, maintenance of the leased equipment, and a various amount of other services you can use, if you need it.
6. Tax Incentives – When you finance your equipment, you have the option to deduct 100 percent of the lease payments (with certain restrictions) as an expense of your business.
7. Technology Upgrades – With leased equipment, you will be able to always stay on par with the latest technological advances. The leasing company can easily upgrade or add equipment that will help you meet the constantly changing needs of your business.
8. Customized Assistance – Your equipment is leased to you by experts in the type of equipment that they are lending to you; be it restaurant equipment leasing, medical equipment leasing or vending machine equipment leasing. These experts fully understand capital equipment markets and will assist you every step of the way, guaranteeing that you will have all the help that you need.
9. Flexibility – With so many different leasing options available to you and your business, you are able to customize the lease to your needs and requirements. You will be able to adjust your lease and finance agreement according to your cash flow, financial fluctuations, structure of your transactions, and many more business-specific situations.
10. Proof of Efficiency – With over 80 percent of all business equipment in the United States are acquired through a leasing or financing process, equipment leasing is popular and for good reason. As the leasing process gets simpler with new platforms and the efficiency of the process gets even better, the more the popularity for leasing will grow.
Equipment Leasing : Growing In Popularity
As mentioned in number 10 on the list above, leasing equipment is continuing to grow in popularity in the United States. As mentioned above, nearly 8 out of 10 businesses in the United States lease some or all of their equipment. This popularity has been building over the past 15 years because it is quick and it is very easy to do. Running a business is all about responding quickly to business opportunities and keeping up with the times.
If you cannot keep up with times and the new technology, then your business will ultimately fail. You can essentially avoid that failure with leasing your business’ equipment and using the saved money on other, very important business expenditures.
More often than not, some lending companies will even approve your application in a matter of minutes, and you can have the equipment that you need very quickly.
Equipment Leasing Is Not Just for Business…
Leasing equipment is not just for businesses, leasing equipment is an option that works great for schools, medical centers, government agencies, and various other instances. With various cutbacks in federal and public funding, there has been a large amount of spending restraints placed on businesses and organizations all around the country. Luckily, leasing the equipment that you need will help curve some of those troubles that you may see with spending cuts.
LeaseQ – For All of Your Leasing Equipment Options
If you are in the marketing for fast, easy, and free equipment financing, then you should look no further than LeaseQ. LeaseQ’s easy to use platform give you a rate quote INSTANTLY. Other lending websites that offer a “lease quote calculator” may not get the exact quotes and rates you qualify for and may have nothing to do with your business’ daily or monthly operations or your credit worthiness. LeaseQ will give you the best financing options for any piece of equipment that you need, and that is one of the main reasons why LeaseQ is continuing to grow in popularity.
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Even better, LeaseQ has joined forces with many financing companies in the lending marketplace to make sure that they are offering you the best and most competitive lending rates across the board. So if you want an INSTANT quote, multiple choices on payment plans, and a pre-qualified lease on your business’ equipment needs, then you should look no further than LeaseQ.
Visit the LeaseQ website by CLICKING HERE, or give us a call at 1-888-688-4519.